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business Glossary
Explore clear, concise definitions for business terms. Each entry is written for fast comprehension and quick reference.
Featured business Terms
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A/B Testing
A user experience research methodology. A/B tests consist of a randomized experiment with two variants, A and B.
Accounts Receivable (AR)
The balance of money due to a firm for goods or services delivered or used but not yet paid for by customers.
Agile
A project management approach that values human communication and feedback, adapting to changes, and producing working results.
Billable Hours
Hours of work that can be charged to a client.
Break-Even Point
The point at which total cost and total revenue are equal.
Burn Rate
The rate at which a new company uses up its venture capital to finance overhead before generating positive cash flow from operations.
A/B Testing
A user experience research methodology. A/B tests consist of a randomized experiment with two variants, A and B.
Accounts Receivable (AR)
The balance of money due to a firm for goods or services delivered or used but not yet paid for by customers.
Agile
A project management approach that values human communication and feedback, adapting to changes, and producing working results.
Billable Hours
Hours of work that can be charged to a client.
Break-Even Point
The point at which total cost and total revenue are equal.
Burn Rate
The rate at which a new company uses up its venture capital to finance overhead before generating positive cash flow from operations.
CAC (Customer Acquisition Cost)
The cost associated with convincing a consumer to buy a product or service, including research, marketing, and advertising costs.
Cap Table (Capitalization Table)
A table providing an analysis of a company's percentages of ownership, equity dilution, and value of equity in each round of investment.
Churn Rate
The rate at which customers stop doing business with an entity.
CLV (Customer Lifetime Value)
A prediction of the net profit attributed to the entire future relationship with a customer.
Conversion Rate
The percentage of visitors to a website that complete a desired goal (a conversion) out of the total number of visitors.
CPA (Cost Per Acquisition)
A marketing metric that measures the aggregate cost to acquire one paying customer on a campaign or channel level.
Credit Note
A document issued by a seller to a buyer to notify that a credit is being applied to their account.
CTR (Click-Through Rate)
The ratio of users who click on a specific link to the number of total users who view a page, email, or advertisement.
E-commerce
Commercial transactions conducted electronically on the Internet.
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization.
Economies of Scale
Cost advantages reaped by companies when production becomes efficient.
Equity Dilution
The decrease in existing shareholders' ownership percentage of a company as a result of the company issuing new equity.
Expense Report
A form used by employees to request reimbursement for business expenses.
SaaS (Software as a Service)
A software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted.
Sales Funnel
A consumer-focused marketing model that illustrates the theoretical customer journey towards the purchase of a good or service.
Scrum
An agile framework for developing, delivering, and sustaining complex products.
SEM (Search Engine Marketing)
A form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages (SERPs) primarily through paid advertising.
Shrinkflation
The practice of reducing the size or quantity of a product while the price of the product remains the same or slightly increases.
Supply Chain
A network between a company and its suppliers to produce and distribute a specific product to the final buyer.
SWOT Analysis
A strategic planning technique used to help a person or organization identify Strengths, Weaknesses, Opportunities, and Threats.